Endorsing Another Tax Won’t Be The Solution For The GTA

As there’s still an ongoing debate on whether or not the tax on foreign ownership of homes in the Greater Toronto Area should be introduced in Ontario as it was in BC. The Fraser Institute commented that this excessive regulation is contributing to the rising cost of homes and is having a toll on builders mostly in Toronto, unlike in other cities like Hamilton.

The compliance cost required for the builders to pay per unit is Hamilton is $20,961. Whereas in Toronto, the cost is much more at $46,569. Oakville is on the high-end, as the compliance fee for the builders can go up to 60k and above. The senior research director at the Fraser Institute and the co-author of the study, Kenneth Green said; “Costly and confusing regulations, long approval times, rezoning delays, and overall uncertainty for developers both increases the costs and impedes new homes from being built throughout the Golden Horseshoe.”

The study showed that the issue on rezoning is a dragging process in Toronto, as it will require at least 7 months for it to be completed, 4 months will be the least average for the region. Green said; “If city councils in the Golden Horseshoe really want to increase the supply of housing and lower prices, they should consider more sound regulatory regimes that encourage, not stifle, residential development.”